Seeking strategic investors next month: Jasa Marga to divest 35% of Trans-Java toll shares
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Cari investor strategis bulan depan: Jasa Marga lepas 35% saham tol Trans Jawa
6 April 2023
By: Muawwan Daelami
Jakarta - PT Jasa Marga Tbk (JSMR) will release 35% of the shares of PT Jasamarga Transjawa Tollroad (JTT), which is Trans-Java toll road’s operator, to strategic partners. Jasa Marga’s JTT shares will be offered next month.
Jasa Marga chooses the strategic partnership scheme to divest JTT shares. This also denies Jasa Marga’s plan to encourage JTT to conduct an initial public offering (IPO). Until now, there has yet to be a target from the sale of the 35% of JTT shares.
State-owned Enterprises (SOE) Deputy Minister II Kartika Wirjoatmodjo explained that, based on the discussion result, the SOE Ministry has decided to implement the strategic partnership scheme for JTT as the toll roads managed by JTT have operated and matured.
He stated that, if JTT conducted an IPO, the company had to prepare a growth story. In line with the plan, Kartika said that Jasa Marga would start looking for JTT’s strategic partners next month by conducting a public offer.
“We will offer up to 35% of JTT shares,” Tiko added after attending the memorandum of understanding (MoU) signing between PT MRT Jakarta (Perseroda) and Jasa Marga at Travoy Hub, TMII on Wednesday (5/4/2023).
Previously, Trimegah Sekuritas analyst Kharel Devin Fielim in his research predicted that Jasa Marga favoured the strategic partnership option compared to an IPO. If Jasa Marga chooses JTT to conduct an IPO, it can decrease the interest of investors in JSMR’s shares.
Moreover, he affirmed that the company would continue to invest in new projects, while JTT would not. Besides that, JTT will offer dividends that reach around 80%-85%, which are higher than Jasa Marga’s dividends that only reach 15%-30%.
“If JTT conducts an IPO, investors will shift their focus from JSMR to JTT. The management does not want that to happen,” Kharel said.
Business diversification
On the other hand, Jasa Marga is also diversifying their revenue outside of the toll road segment by boosting the financial performance of their subsidiary, PT Jasa Marga Related Business (JMRB).
The state-owned toll road operator issuer with MRT Jakarta have agreed to sign an MoU on route development and transit-oriented development (TOD).
Jasa Marga President Director Subakti Syukur said that the purpose of TOD was to create attractive intermodal interconnection. At the locations, the company through JMRB will develop commercial areas, offices, green open spaces, and public spaces.
“Everything will contribute to economic development. It is also expected to reduce the speed,” Subakti stated.
Most of Jasa Marga’s revenue last year were contributed from the toll road segment that reached Rp12.4 trillion out of their total revenue of Rp16.5 trillion. Other business revenue contributed Rp1.3 trillion and construction revenue Rp2.8 trillion.
